What is a Point of Service, or POS, Health Plan?
Jake Newby
| 3 min read
When it’s time to choose a health insurance plan for your company, there are three acronyms or types of plans that are most widely available: HMO, PPO and POS. Each type of plan comes with its own unique benefits and features.
HMO, short for health maintenance organization, focuses on prevention and wellness. Members select a primary care physician, or PCP, to coordinate their care and write referrals to see specialists. HMO plans help reduce the cost of care and improve health outcomes.
With a PPO, short for preferred provider organization, members coordinate their own care but have greater flexibility to see specialists without a referral.
Another type of plan is a Point of Service, or POS plan. POS health plans are popular options because of their flexibility and affordable premiums that fall between those of an HMO and PPO. Blue Care Network (BCN) offers Blue Elect Plus℠ POS plans to employers of all sizes.
What are the benefits of a Blue Elect Plus POS plan?
Blue Elect Plus POS plans offer the affordability and managed care benefits of an HMO without the need for a referral. Our members have access to BCN’s large network of doctors and hospitals and have the flexibility to choose a provider in or out of network.
Members who live in Michigan need to select a BCN primary care provider, or PCP. They can have one PCP for everyone in their family. Or each family member can have their own. A referral is not needed to see a specialist or go to a hospital. Members pay less out of pocket for health care services when they see an in-network BCN provider.
Blue Elect Plus POS plans allow members to receive health care benefits while traveling or living in another state. Members who live outside of Michigan don’t need to select a PCP or a get a referral to visit other health care providers. But to receive lower-cost, in-network benefits, they need to see a provider who participates in the BlueCard® Traditional program.
Blue Elect Plus POS plans offer additional benefits:
- Prescription drug coverage
- Preventive care that is 100% covered
- More affordable premiums
- Health savings account (HSA) options
- Health reimbursement arrangement (HRA) options
Pairing Blue Elect Plus POS plans with an HRA: what to know
BCN has added expanded POS plan options for small and large groups in 2025. Also new in 2025 are Blue Elect Plus HRA℠ POS plans that offer:
- Comprehensive coverage and value
- Employer exemption from federal payroll taxes for HRA account contributions and reimbursement of qualified medical expenses
- The ability for employees to use tax-free money to pay for qualified medical expenses
- No HRA startup or administrative fees for fully insured groups
- Pay-as-you-go HRA funding
- Convenient use of employers’ own financial institution
- Seamless, integrated medical and HRA claims processing to eliminate reimbursement hassles
Have questions? We’re ready to help. Contact your sales representative to learn more about BCN Blue Elect Plus POS plans.
Photo credit: Getty Images
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